Modelling of critical factors for responsiveness in supply chain
Journal of Manufacturing Technology Management
ISSN: 1741-038X
Article publication date: 6 July 2015
Abstract
Purpose
In globalized economy, product life cycle is reducing continuously, customers demands are changing fast, and lead time for response is decreasing. In such scenario, ability of firms to quickly respond to changes in their external environment is a primary determinant of firm’s performance. This can be only possible when whole of the supply chain (SC) is responsive. For this, firms have to manage internal operations effectively to enable SC, responsive for market requirements. The purpose of this paper is to identify different factors for responsive SC.
Design/methodology/approach
Based on literature review, total 17 critical factors for the responsive SC have been identified. Some of these factors are process oriented and some are result oriented. To develop structural relationship among these factors from strategic perspective, interpretive structural modeling (ISM) approach has been applied.
Findings
It is observed that top management commitment, strategy development, resource development, use of technology, risk and reward sharing are major drivers for responsive SC. By managing these enablers, organizations can also benefit in terms of inventory management, lead time reduction and agility.
Research limitations/implications
ISM has got some limitations. Major limitation is that the relationships developed are subjective and there are chances of biasing. Therefore findings need to be validated with case studies and empirical findings.
Practical implications
Top management should strive for effective use of resources and technology to improve SC capabilities to meet market changes.
Originality/value
This study develops structural relationships between different factors and it will help organizations in taking initiatives for improving responsiveness.
Keywords
Acknowledgements
This research paper is part of research project sponsored by Department of Science and Technology, Govt of India. Author is grateful to the sponsoring organization for the support. Author would like to thank Editors of the journal and three unanimous referees for their rigorous review and valuable comments to improve quality and content of the paper.
Citation
Singh, R.K. (2015), "Modelling of critical factors for responsiveness in supply chain", Journal of Manufacturing Technology Management, Vol. 26 No. 6, pp. 868-888. https://doi.org/10.1108/JMTM-04-2014-0042
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited